JSC „Olainfarm” 23.01.2007. Comment to information given to mass media The representative office of „IMS Health” in Latvia has published the results on sales of medicines to Latvian hospitals and pharmacies in 2006. JSC Olainfarm has sold for 10.86% more medicines during the last year comparing to 2005. Therefore some news agencies asked JSC Olainfarm management to comment the reasons of this increase, the general assessment of the operations of the company in 2006, some forecasts for year 2007, as well as major plans or projects. Here are the comments published by management of the company which may contain some information significant for investors and shareholders as well. 1. What is the increase in sales of medicines to Latvian hospitals and pharmacies related to? Increase in sales of Olainfarm medicines to Latvia’s hospitals and pharmacies has mainly been achieved with successful marketing effort taken by the company. Increase of more than 10% indicates that the targeted work of company’s representatives has resulted in perception of the public of Olainfarm’s medicines as safe and good quality medicines. Also, of course, the selection of products has a role to play, and the figures show that it has been a well demanded one. The most demanded products of Olainfarm in last year have been Omeprazols (used to treat ulcers, decreases the amount of acid produced in the stomach), Noofens (nootropic medicine with qualities of day tranquilizer), Neuromidins (improves the transmission of neural impulses in central and peripheral neural system), Furamags (antibacterial medicine), Jogurt (probiotic capsules of yoghurt), Ribavirins (antiviral medicine), Ranitidins (medicine for reduction of acid production in a stomach), Remantadins (antiviral medicine). 2. How would you assess the operations of company in 2006 in general? We regard the operations of Olainfarm in sales of medicines to Latvian hospitals and pharmacies as a successful one. We have increased our sales to pharmacies by 38%. Now we are starting to enjoy the results of investments made by Olainfarm in its development in previous years. In 2004 our company underwent a serious reconstruction and implemented a Good Manufacturing Standards, while in 2005 we strengthened our marketing effort and increased sales. During the last year Olainfarm continued the reconstruction of existing production facilities, created new ones, strengthened marketing activities, worked on new products, which all resulted in increase of sales. They all are long term investments that will ensure improvement in company’s main indicators in future as well. 3. What are your forecasts for this year? Olainfarm plans that it would increase its sales to pharmacies by a third in 2007. 4. Are there any major plans or projects? Currently we can not publicly speak about any particular major plans of Olainfarm, however we can surely say that we will continue to strengthen our effort to promote the sales of our current products. Olaine, January 23rd, 2007 Prepared by Viktorija Žuka-Ņikuļina Head of Legal department Phone. 7013 870, 29473980 Fax 7013 777 vzuk@olainfarm.lv